Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • IT Management
    • Networking

    IBM Profits Rise 22% on Services, Software

    By
    Darryl K. Taft
    -
    July 18, 2008
    Share
    Facebook
    Twitter
    Linkedin

      IBM’s second-quarter profits grew 22 percent, led by services and software revenue and sales in international markets.

      IBM’s revenues grew 13 percent to $26.8 billion, while net income for the period was $2.8 billion, the company said. Also, as IBM pulled $10.9 billion in revenue from its Americas sector, the company drew $15.1 billion from international markets, indicating that it might be buffered by its broad participation in worldwide and emerging markets as the economy undergoes a downturn.

      IBM revenues from the Europe, Middle East and Africa market segments rose 20 percent to $9.8 billion, while revenues from the Asia-Pacific market grew 16 percent to $5.3 billion. U.S. revenues grew by 5 percent. However, overall Americas revenue grew by 8 percent, to $10.9 billion.

      “IBM had an outstanding quarter and a strong first half for 2008. These results demonstrate that IBM has the ability to thrive in both emerging and established markets. Once again, IBMers performed very well around the world,” Samuel Palmisano, IBM chairman, president and CEO, said in a statement.

      “We really executed to focus on high-growth emerging markets,” Mark Loughridge, IBM senior vice president and chief financial officer, said in a conference call with analysts. “We enter the second half [of the year] with a lot of momentum.”

      Accounting for the lion’s share of IBM’s revenues, total IBM Global Services revenues grew 16 percent. IBM’s Global Technology Services segment revenues increased 15 percent to $10.1 billion, with significant growth from existing clients, the company said. Global Business Services segment revenues increased 18 percent to $5.1 billion.

      “The advantage of having a high-value services business is we can adapt our offering to meet customer needs,” Loughridge said. “We see both Global Business Services and Global Technology Services performing well within their model. We’re quite encouraged by our services business.”

      Revenues from IBM’s combined Systems and Technology segment totaled $5.2 billion for the quarter, up 2 percent. However, systems revenue grew 10 percent, with revenues from IBM’s System z mainframe computers growing by 32 percent, the company said.

      “We’re pleased with the z Series performance at 33 percent [growth],” Loughridge said. “As we closed out the second quarter we were sold out [of System z servers] … and I think the z Series is going to be a very strong play for us in the second half.”

      Software revenues accounted for $5.6 billion of IBM revenues, up 17 percent over the same period last year. Revenues from IBM’s total middleware products, which primarily include WebSphere, Information Management, Tivoli, Lotus and Rational products, were $4.3 billion, up 17 percent, versus the second quarter of 2007.

      Among the individual software units, IBM’s Rational unit showed the highest growth at 37 percent, Information Management software revenues grew by 30 percent, Lotus grew 21 percent and the WebSphere and Tivoli units both grew by nine percent.

      “We had good closure on our software base as we closed out the quarter,” Loughridge said. “The software business had a very effective quarter on both the revenue and profit line.”

      Darryl K. Taft
      Darryl K. Taft covers the development tools and developer-related issues beat from his office in Baltimore. He has more than 10 years of experience in the business and is always looking for the next scoop. Taft is a member of the Association for Computing Machinery (ACM) and was named 'one of the most active middleware reporters in the world' by The Middleware Co. He also has his own card in the 'Who's Who in Enterprise Java' deck.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×